Mortgage lenders value security. A permanent employment contract is therefore of great importance to them when it comes to covering payment risks as much as possible. But the world is changing: the number of flex workers, freelancers and temporary workers is increasing and the crisis has shown that a permanent contract is no guarantee of income security. In 2016, the possibilities for freelancers were expanded to be able to take out a mortgage. In 2017, it is the turn of the temporary employees: since January of this year, they are also more easily eligible for a mortgage.
To make mortgage lending easier for temporary workers, a change in thinking had to be made. Whereas previously, when assessing a person’s creditworthiness, the focus was on the type of employment contract and the employment history, now the focus on someone’s future chances on the labor market are more important for the development of his financial position than a permanent contract.
The Dutch Bond of Brokerage and Temporary Employment Agencies (NBBU) started a pilot in January of this year, in collaboration with ‘Huis & Hypotheek’, ‘De Hypotheekshop’ and a few other lenders, in which the future expectations of someone determine whether or not qualify for a mortgage.
‘De Hypotheker’ and ‘Hypotheekvisie’ have also joined the project in recent months. The determination of those opportunities is done through the labor market scan, an online tool developed by the Intelligence Group, specialist in labor market data. Provided that someone has worked for at least a year, this tool calculates labor market opportunities based on a series of questions about education, occupation, sector and region. For now and in the future.
On the basis of extensive, objective data, a person’s prospects, risk of unemployment and earning capacity for the next five years are mapped.
The labor market scan is certainly not optional; the bar is high and the criteria are clear. For example, someone working in a growth sector will achieve a high score faster. Just like controlling a craft, that of carpenter or plumber, influences: the demand for good craftsmen is increasing. Are you higher educated in healthcare? HBO students in that direction score well.
A good basic education is an advantage, keeping up and expanding your knowledge is even more so. A positive score, expressed on a scale of 0 to 100, then provides sufficient certainty that someone can continue to meet the obligations of a mortgage. This paves the way for a visit to a mortgage adviser for a mortgage quote.
It goes without saying that the income, the price of the owner-occupied home and other financial matters such as existing debts and a partner’s income determine the acceptance of a mortgage application. However, if the conditions are met on those points, the labor market scan makes acceptance a lot easier. The labor market scan can also be used for people working in a payroll context or on the basis of a temporary contract.
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